PA N – J A M A I C A N Investment Trust Limited (Pan Jam) which invests in real estate and holds equity stakes in well-known local and regional brands, made $853 million net profit for its owners in the June secondquarter 2015 or 23 per cent higher year-on-year. The performance of its associated companies — led by Sagicor Life Jamaica — spurred its profit growth.

Pan Jam chief executive Stephen Facey also confirmed that the company paid in full its prominent US-dollar denominated loan from the IFC, the lending arm of the World Bank.

“Pan Jam issued $3 billion in bonds subsequent to the period, using part of the proceeds to repay this IFC loan in full,” stated Facey in a statement accompanying the financials released to the Jamaica Stock Exchange this week. Pan Jam holds investments in property development, tourism, insurance, banking, manufacturing, retail trade, financial services and investment.

It really benefited from its share of earnings from associated and joint venture companies for the quarter which increased to $791.1 million from $597.7 million a year earlier. Pan Jam holds 31.6 per cent of insurance giant Sagicor; 20 per cent in Chukka Caribbean Adventures Limited, an attractions tour; a 35 per cent stake in Caribe Hospitality Jamaica Limited, a property development company; and has a 50 per cent holding in Mavis Bank Coffee Factory Limited.

The Mavis Bank operation is held under parent company New Castle (which includes sauce brands Walkerswood, Jamaica Joe and Busha Browne). The majority of its earnings from associates came from Sagicor, which increased by $175 million for the quarter or one-third higher year on year.

Hardware & Lumber reported net earnings of $15 million for the quarter, compared to $29 million for the same period last year. Second-quarter revenues were up slightly compared to last year, and gross margins improved, stated Facey. Pan Jam’s total assets amount to $27.4 billion with relatively low liabilities up to June, which resulted in total equity of some $22 billion.

Its core revenues, mostly comprised of property rental, decreased to $341.6 million from $388.8 million a year earlier. That was due to its occupancy levels dropping from 97 per cent to 85 per cent due to a tenant buying out their lease prior to normal termination previously disclosed in its March quarter.

The company continues with the construction of its Courtyard/Marriott Hotel project in New Kingston. Facey expects to open the hotel later this year. The group received project loan financing of US$17.5 million from the IFC some time prior to its 2008 financial year-end.

The June quarterly financial notes explained just how it would pay down on the IFC loan utilising the $3 billion it raised. “Proceeds were used, in part, to repay existing debt including the full amount of the group’s US$-denominated loan with the International Finance Corporation ($1.3 billion at June 30, 2015) and the $750-million tranche of the secured commercial notes due July 2015,” stated the financial notes.

Facey commended the Government for its PetroCaribe debt buy-back, indicating that it would reduce the national debt to gross domestic product ratio. “This provides further evidence of the improvements accruing to Jamaica as a direct result of the steady efforts of the Government.

It is critically important that we stay the course so that the considerable sacrifices made by a significant portion of the population in getting us to this point are not, in the end, wasted,” stated Facey.